Eskom Profit More Than Doubles as Power Cuts Ease

BREAKING NEWSAugust 31, 2026 at 2:03 PM UTC

TLDR

Eskom's annual profit more than doubled to R30.3 billion as power cuts decreased and spending on diesel-fired generation dropped.
Revenue increased by 4.1% supported by a 12.7% average electricity tariff increase despite a 6.2% decrease in sales volumes, particularly in industrial demand.
Eskom plans to reinvest profits into a R343 billion capital program over the next 5 years, targeting new demand from various sectors while addressing the ongoing concerns around debt and unpaid bills.

South Africa’s Eskom more than doubled annual profit as power cuts fell and spending on diesel-fired generation dropped. Profit after tax rose to R30.3 billion in the year ended March from a restated R14 billion a year earlier. The utility implemented rolling blackouts on only 4 days during the year, compared with 13 days in 2025 and 329 days in 2024.

Revenue increased 4.1%, supported by an average electricity tariff increase of 12.7%. Sales volumes, however, fell 6.2%, including a 23% decline in industrial demand. Eskom has experienced a long-term decline in electricity sales as businesses and households install their own generation and some industrial users reduce operations.

Lower use of diesel-fired turbines helped the result, with spending on the plants falling by R10.6 billion. Eskom plans to reinvest profit into a R343 billion capital programme over the next 5 years. It is also seeking new demand from industrial customers, data centres, electric vehicles and crypto miners while expanding into renewable generation through its Eskom Green unit.

Debt remains a concern. Eskom reported R356 billion of debt securities and borrowings at the end of March, while unpaid municipal bills reached R119 billion by June. The utility warned that municipal arrears could rise to R358 billion by 2031 without action.

Chief Executive Officer Dan Marokane said Eskom is working to rebuild industrial electricity demand after reaching a supply agreement with ferrochrome producers including Glencore and Samancor Chrome. Chief Financial Officer Calib Cassim will also retire, with the board targeting a replacement by the end of 2026.

Points clés à retenir

Eskom’s R30.3 billion profit marks another step away from the years when power cuts, diesel costs and debt made the utility one of South Africa’s main economic problems. But the next stage of its turnaround is different. The company now has more electricity available at a time when demand is falling. Sales dropped 6.2%, with industrial consumption down 23%, as large users cut production, moved to private generation or changed how they buy power. That means Eskom can no longer depend on selling more electricity to improve its finances. It must lower costs, recover unpaid bills and compete for customers as South Africa opens its electricity market to private producers and traders. Municipal debt is the largest financial risk. Arrears of R119 billion reduce cash available for maintenance and investment even when Eskom reports accounting profit. The planned R343 billion capital programme will also require the company to preserve cash while maintaining plant reliability. Growth from data centres, electric vehicles and industrial customers could offset part of the decline in traditional demand, but the business model is changing. Eskom’s turnaround will now be measured not only by ending power cuts, but by whether it can remain profitable in a market where customers have more choices.

South Africa